debtconsolidationconnection.com
501 (c)(3) non-profit Organization
Free Consultation
Trade group responds to debt settlement bill
By Sam Craine on Apr 17th, 2010
Consumers may consider debt settlement as an option to deal with what they owe, although officials and consumer groups have warned against the practice.
For example, Illinois Attorney General Lisa Madigan has said companies that offer debt settlement may leave consumers further in the red while also charging them upfront fees. However, the Association of Settlement Companies recently came out against Madigan's comments.
David Leuthold, executive director of the debt settlement trade organization, said that painting the entire industry in a negative light is misleading to consumers.
"There are many good debt settlement companies who are helping tens of thousands of consumers resolve their debt when no other help is available," Leuthold said.
Madigan recently crafted a bill that would further regulate debt settlement companies, including banning upfront fees for the service and requiring that firms register with the state.
TASC said Madigan's bill would limit settlement companies to such a degree that they could not operate in the state even if they followed the new regulations. Limits on fees would make it impossible for the companies to operate, the organization said.
More Debt Settlement News
